JPMorgan expects Google Cloud revenue to match Google Search revenue by late 2028, when the cloud business was previously viewed as a side project. The bank now forecasts year-over-year growth of 100% in the third quarter of 2026, 105% in the fourth quarter, 107% for full-year 2027 and 63% in 2028. The upgrade is driven partly by Alphabet’s tensor processing units, whose external sales exceeded $1 billion in the second quarter of 2026 and could generate between $75 billion and $113 billion by 2028. In the second quarter of 2026, Google Cloud generated $24.8 billion, compared with approximately $63 billion from Search, while its backlog stood at $514 billion, with half expected to be recognized within 24 months.
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